Gold Slips Over 1% as Ceasefire Between Israel and Iran Dampens Safe-Haven Buying

Gold Falls to Two-Week Low as Ceasefire Eases Geopolitical Tensions, Markets Shift to Risk-On Mode.

Gold prices slipped more than 1% on Tuesday, hitting a near two-week low, as investor demand for safe-haven assets weakened following a ceasefire agreement between Israel and Iran. The truce, brokered by the U.S., brought a halt to 12 days of escalating conflict, prompting a rise in global risk appetite and reducing support for bullion.

As of 0639 GMT, spot gold dropped 1.4% to $3,319.84 per ounce, its lowest level since June 11. U.S. gold futures were also down 1.7%, trading at $3,335.50.

“There’s a significant unwinding of geopolitical risk in the short term, especially after signs of de-escalation between the U.S., Iran, and Israel,” said Ilya Spivak, head of global macro at Tastylive.

The ceasefire announcement, confirmed by both U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, boosted global equity markets and pushed oil prices to a two-week low, further eroding gold’s appeal.

Attention now shifts to U.S. Federal Reserve Chair Jerome Powell, who is scheduled to testify before the House Financial Services Committee later on Tuesday. Powell is expected to maintain a cautious stance on rate cuts, though Trump reiterated his call for a 2–3 percentage point reduction in interest rates.

Analysts suggest that while the longer-term bias for gold remains bullish due to broader macroeconomic uncertainties, short-term corrections are likely if the Fed reinforces a less dovish monetary outlook.

“Gold thrives in low-rate environments, but if Powell tempers expectations for aggressive easing, we could see a near-term dollar uptick and further pressure on gold,” Spivak noted.

Other precious metals also dipped:

Silver fell 0.5% to $35.96/oz

Platinum declined 1.1% to $1,280.58/oz

Palladium dropped 2.2% to $1,055.15/oz

With geopolitical tensions momentarily easing, investors appear to be recalibrating portfolios towards riskier assets, keeping gold under pressure—for now.